M.Y. Safra Bank Ups 1-Year Online CD Special

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Deal Summary: 1-Year Online CD Special, 1.70% APY, $5k min/$250k max, new money

Availability: Nationwide

I wrote this piece on Friday morning, after seeing that M.Y. Safra Bank (MYSB) had raised the rate on its 1-Year Online CD Special to 1.76% APY. As I was proofing my blog post, I double-checked MYSB’s website and saw that in the two hours since I began writing, the rate had been changed to 1.70% APY. My first thought was that an error had been made and was subsequently corrected. Fair enough, blame it on IT.

But after thinking about it, I’m wondering if no one individual bank wants to be King of 1-year CD Rate Mountain. VirtualBank’s recent 1.76% lasted only a few days; now it’s back down to 1.69%. Currently, there are 12 banks offering rates in the 1.70% to 1.75% range, so there's no lack of competitive rates. Perhaps a few days ago, someone at MYSB thought a rate increase to 1.76% was a good idea, put the rate change in motion, and then realized yesterday morning it wasn’t that great of an idea. Further speculation on my part won’t change the numbers, but I felt DA readers should know the backstory of this blog post.

In March, M.Y. Safra Bank introduced its new Online CD Specials, as part of the Bank’s foray into internet banking. The rate on the 1-Year Online CD Special was raised today to 1.70% APY. The minimum opening deposit is $5k of new money, with a stated balance cap of $250k. M.Y. Safra Bank offers a "Jumbo" version of the 1-year Online CD Special that requires a minimum $100k deposit, but the APY is the same 1.70% APY.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.70%$5k-M.Y. Safra Bank12 Months Online Promo CD (New Money)
1.70%$100k-M.Y. Safra Bank12 Months Jumbo Online Promo CD (New Money)
Accounts mentioned in this post. Rates as of November 20, 2017.

In the eight months since the 1-year Online CD Special was first offered, it has experienced nine rate increases, adding a total of 34 bps to its APY.

The fine print on the promotion page states,

Negotiable rates are available for deposits of more than $1 million.

CSR explained that while individual CDs are limited to a maximum $250k deposit, if four or more $250k CDs were to be opened, the APY is negotiable.

As stated in the Truth-In-Savings Disclosure (page 24), the Early Withdrawal Penalty reads as follows:

The penalty will be an amount equal to the greater of credited or 90 days interest.

The online application reads,

If funding your new accounts by electronic transfer from another financial
institution, please have ready their routing number and your account number.

That statement gave me hope that funds from a maturing CD could be distributed in the same manner. According to CSR, the Bank’s standard practice is to issue a check upon maturity, but the funds could be sent by wire for a $20 fee.

In the course of our conversation, CSR also mentioned that Social Security numbers are required when naming any beneficiaries.

Availability

Headquartered in New York City, M.Y. Safra Bank came into being when T. Rowe Price Group Inc., sold its Baltimore-based T. Rowe Price Savings Bank in 2013 to New York financier and banker, Jacob Safra. The sale of the Bank was prompted by new regulations affecting the banking industry.

According to the promo page fine print, the Online Special CDs can be opened by all “U.S. natural persons depositing new funds” and must be opened online.

MYSB does have one full-service branch located in Manhattan on Park Avenue at 59th Street.

Bank Overview

M.Y. Safra Bank, has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent, and not a typo), based on June 30, 2017 data. In the past year, MYSB has increased its total non-brokered deposits by $40.09 million, an excellent annual growth rate of 25.68%. Please refer to our financial overview of M.Y. Safra Bank (FDIC Certificate # 35154) for more details.

How the Online CD Specials Compare

When compared to the 207 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, M.Y. Safra Bank’s 1-Year Online CD Special APY currently ranks fourth.

Interest RateCD Length of TermCredit Union/Bank
1.75% APY14-Month CDINOVA Federal Credit Union
1.72% APY12-Month IB CDIncredibleBank
1.70% APY1-Year Online CD SpecialM.Y. Safra Bank

When compared to the 217 similar length-of-term CDs tracked by DepositAccounts.com that require a large minimum deposit and are available nationally, M.Y. Safra Bank’s 1-Year Jumbo Online CD Special APY currently ranks fifth.

Interest RateCD Length of TermCredit Union/Bank
1.87% APY1-Year Jumbo Certificate ($50k min)Advancial
1.77% APY12-Months Jumbo Online Time Deposit ($100k min)My eBanc
1.70% APY1-Year Jumbo Online CD Special ($100k min)M.Y. Safra Bank

The above rates are accurate as of 11/18/2017.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our new Rates Map page.

Related Pages: New York CD rates, 1-year CD rates, nationwide deals, Internet banks

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M.Y. Safra Bank Boosts Rates On Online CD Specials
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Availability: Nationwide

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